Schweser is wrong!!!!!!!!!? Mortality probability question.. question, charity, amount, wrong, money

mar350

Schweser SS4, p313, this has got to be wrong? Answer C to the Example question… says can gift $2.5m-￡1.85m to charity. SURELY NOT!!!!!? Is this not the amount of money they need to live on until they reach the 10th year? If they gave the remainder away, surely they’d run out of cash at th 10th year!!!?
The paragraph underneath on Safety Reserve says they’d run out at age 100, but that doesn’t make sense? The table says they need $1.85m over the next 10 years doesn’t it?
Thank you for your help! Tell me am not going insane?
Rich

Otabek

Fair point - which questions should I be using? Buy the CFA online exams?

ruchita

Yes, blue boxes and end of chapter problems, CFA online exams, old CFA exams. I am only using Schweser flash cards to review overall concepts at this point and that is basically the consensus on AF.

sabaruch

yikes. I bought Schweser for its extra questions (been reading CFAI and doing Schweser Qs since L1) and didn’t realize Schweser Qs for L3 were bad until now :S. First the exams were bad (roy Safety First Q) and now their regular material is bad? There should be disclaimers on AF for those who are thinking of purchasing L3 Schweser.

scruge

i do agree that at this point you should be essentially off shcweser but in all fairness there is nothing wrong with this question

cyber21

Ya nothing wrong with the question, I was just stating overall. I think there value in the Schweser Exams still and I did all of them. Its just with 9 days until the exam I am doing CFAI only.